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Explaining the stringency of environmental policies: Domestic determinants or international policy coordination?

Isabelle Cadoret () and Fabio Padovano ()
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Isabelle Cadoret: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Fabio Padovano: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, ROMA TRE - Università degli Studi Roma Tre = Roma Tre University

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Abstract: This paper examines how and to what extent spatial interactions among EU national governments affect the stringency of environmental policies (EP). We innovate on the literature along three dimensions: 1) we evaluate the spatial interactions across countries to assess the "interaction dividend" associated with international treaties; 2) we better examine how political and institutional variables shape EP when such interactions are taken into account; 3) we identify the type of EP for which these interactions play a more relevant role by considering for the first time the new EPS21 disaggregated indexes of policy stringency. In a sample of 21 European countries between 2000 and 2018, a benchmark model shows that, among country-specific effects, proxies for the industries' lobbying power, quality of governance, government's ideology, decentralization and the urbanization rate of voters play important roles. When the model consider spatial interactions among countries, the estimates reveal that between 1/3 and more than one-half of a country's commitment to EP can be attributed to positive spillover effects from other countries, depending on the type of policy, with more prominent effects in technology support policies. These results reinforce the need of supranational coordination through international organizations and treaties.

Keywords: Environmental policy stringency; Spatial interactions; International policy coordination; Regulatory quality; Decentralization; Voters; Special interest groups (search for similar items in EconPapers)
Date: 2024
Note: View the original document on HAL open archive server: https://hal.science/hal-04721443v1
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Published in European Journal of Political Economy, 2024, 85, pp.102596. ⟨10.1016/j.ejpoleco.2024.102596⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04721443

DOI: 10.1016/j.ejpoleco.2024.102596

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